The Latvian Competition Council has granted permission for Dobeles dzirnavnieks and Brueggen International GmbH to jointly acquire a controlling interest in RIGAS DZIRNAVNIEKS. Dobeles dzirnavnieks is a Latvian company engaged in grain processing, food production, and grain trading, while Brueggen International GmbH, based in Germany, specializes in the production of high-quality breakfast cereals.

RIGAS DZIRNAVNIEKS, a Latvian company involved in the production and sale of flour, bran, breakfast cereals, and porridge, was previously solely controlled by Dobeles dzirnavnieks. After the planned transaction, RIGAS DZIRNAVNIEKS will become a joint venture of Dobeles dzirnavnieks and Brueggen, focusing on oat product manufacturing with each participant holding a 50% stake.

The Competition Council concluded that the merger would not significantly alter the market structure in horizontally related oat flake markets for end consumers and industrial clients. It was determined that the merger would not reduce competition or establish or strengthen a dominant position in the affected markets in Latvia, hence the approval of the merger.

To prevent a substantial decrease in competition due to company mergers, mergers meeting the criteria set out in the Competition Law require approval from the Competition Council. This ensures state control over market concentration to prevent structural changes that could limit consumer choices in the long term or result in the purchase of goods and services at non-competitive prices.